Tesla's New Master Plan Doesn't Fool Investors

Uh oh! People holding the "golden egg" stock are getting antsy. If you've got Tesla stock, dump it before the implosion happens.

Tesla stock is down 3% since Wednesday.

I'm no expert, but because of all the uncertainties (thoroughly detailed in this site and others) it would seem possible/likely that the next "bad news" could make Tesla pull a "Netflix" (down 10% this week) where the stock just starts "gapping" downwards like a falling knife.

They use the phrase "catching a falling knife" for a reason. You can cut up pretty badly.

Musk tells exciting "inspiration" stories.

Tesla has a long history of not delivering on those stories. Missed sales targets. Non-transparency. Quality issues (1/3 of Model S owners need entire drivetrain replaced by 60,000 miles). Supplier non-confidence.

Tesla has never turned a profit, and it survives only on selling shares (which get diluted every time new shares are issued) and government grants and subsidies. Ouch! Worse still, analysts agree that Musk has never presented them with a viable plan to become profitable.

You know, all this stuff won't matter when Tesla becomes a raging, profitable, enduring success, but until that day comes -- if it ever does -- these matter (and more) are gravely serious, and SOME shareholders are starting to pay attention to them.

The biggest problem for Tesla is that - its basic sales model - ie set prices - only works for the initial sales push - until competition comes in. The longer it takes for Tesla to actually produce vehicles - the more likely that they will not have the market largely to themselves. You can bet that GM and MB will compete on price. And you also can bet that with all of the movement toward EVs in Europe and CHina - that there will be LOTS of big names in the mix.

Tesla cannot afford to discount its products - it already has no profit in them. Volume production will not produce the economies of scale over other manufacturers who already know more about production than Tesla will ever know. Example - you cannot greatly reduce the price of Lithium Ion Batteries when there is actually a shortage of Lithium in the world- that cannot cover all of the batteries for all the proposed EV's now. So Lithium prices stay high - and the price of the batteries simply cannot go down enough.

However - to blame this on the Democrats - simply is not supported by the facts. The white house cannot appropriate funds itself - this must come from the conservative free marketeers - ie the republicans who control congress - who want to move all production out of the country to make more profits for the millionaire republicans who are the only people who have profited from the economy in the last 10 years. As the average person has had seen his wages stagnate or go down - the upper 5% of the earners are the one who have received virtually ALL of the tax breaks. The reason why Trump does not want to release his taxes is probably because - based on loopholes in the system - he either pays little or no taxes - and has for years. ANd all he will say is - Welcome to the real-estate business!

Where is mre30 ? we need already have Moe and Larry, we need Curly to complete the 3 Stooges.

@HenryN you need to buy heavy into Tesla...no really you do.

BobM, you can sit in for mre30/Curly and get smacked around by MD/Moe

@HenryN you are such an idiot. BobM said Tesla is "vaporware" and "highway robbery of the taxpayers" so why would I smack him around for having an intelligent perspective?

@MD man you are so predictable and flammable. It's so easy to tick you off. I hope your arteries can withstand all those rages inside you. I'm done playing with you. I don't want to feel guilty when your heart gives up.

@HenryN Do you promise??? If so, this will be fun.

Amateur hour at the corporate level. Elon has never been where he is and may not be there much longer if he keeps pedaling this visionary bullsh**t!

Tesla is a smoke and mirrors operation funded by the corrupt white house liberals. It is a losing operation with billions of tax payer dollars funding its existence to satisfy the 'feel good religion' of the sick, corrupt liberal democrat party.

The wacko democrat party zombies still refuse to accept that the electric cars are mostly powered by fossil fuel coal and gas energy. Tesla is a total phony switcheroo scam.